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Alliant Energy to Record $60M Impairment Charge

EditorLina Guerrero
Published 06/24/2024, 06:13 PM
LNT
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MADISON, WI – Alliant Energy Corp (NASDAQ:LNT) and its subsidiary Interstate Power and Light Company (IPL) announced today that they will record a one-time charge of approximately $60 million pre-tax, or $45 million after-tax, in their upcoming quarterly financial results. This non-cash charge, amounting to roughly $0.17 per diluted share, is tied to a settlement agreement concerning IPL's retail electric rate review.

The charge is a result of a recent settlement with the Office of Consumer Advocate and the Iowa Business Energy Coalition. Due to the terms of the settlement, it has been determined that it is not probable for IPL to earn a return on the regulatory asset associated with the retired coal-fired Lansing Generating Station from its retail customers. This conclusion was reached on Thursday last week, and the final rates are expected to be implemented later in the year.

Alliant Energy has cautioned that statements regarding this asset valuation charge are forward-looking and subject to risks and uncertainties. These could potentially lead to actual results differing materially from the projected outcomes. Some of the risks include the receipt of final regulatory approvals and final asset valuations.

In other recent news, Alliant Energy Corporation's fully owned subsidiary, Alliant Energy Finance, LLC, has priced a private offering of $375 million in senior unsecured notes due 2027. The proceeds from this note offering are planned for repaying outstanding commercial paper and for general corporate purposes. However, the company has stated that there can be no guarantee the offering will be completed as anticipated or at all.

Simultaneously, Alliant Energy reported earnings of $0.62 per share for the first quarter of 2024, despite unusually mild weather. The company has also reaffirmed its 2024 earnings guidance range of $2.99 to $3.13 per share, indicating a consistent growth track.

In addition to its financial developments, Alliant Energy has made substantial progress in expanding its renewable energy portfolio. The company has notably become the largest owner-operator of solar generation in Wisconsin. Furthermore, Alliant Energy has issued a $300 million green bond and plans to refinance $800 million in debt, highlighting its ongoing efforts to strengthen its financial position. These recent developments reflect Alliant Energy's commitment to both financial stability and renewable energy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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